Have Gates Industrial Insiders Been Selling Stock?
Some Gates Industrial Corporation plc (NYSE:GTES) shareholders may be a little concerned to see that insider Gwendolyn Montgomery recently sold a substantial US$927k worth of stock at a price of US$22.60 per share. That sale reduced their total holding by 43% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Gates Industrial
In the last twelve months, the biggest single purchase by an insider was when Independent Director Fredrik Eliasson bought US$1.2m worth of shares at a price of US$19.56 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$22.23. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
All up, insiders sold more shares in Gates Industrial than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Gates Industrial
I will like Gates Industrial better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Gates Industrial Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Gates Industrial insiders own about US$101m worth of shares (which is 1.7% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Gates Industrial Insiders?
Insiders sold Gates Industrial shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Gates Industrial is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Gates Industrial is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored...
Of course Gates Industrial may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.